Sally Beauty Supply 2011 Annual Report Download - page 138

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Sally Beauty Holdings, Inc. and Subsidiaries
Notes to Consolidated Financial Statements (Continued)
Fiscal Years ended September 30, 2011, 2010 and 2009
17. 401(k) and Profit Sharing Plan
The Company sponsors the Sally Beauty 401(k) and Profit Sharing Plan (the ‘‘401k Plan’’), which is a
qualified defined contribution plan. The 401k Plan covers employees of the Company who meet certain
eligibility requirements and who are not members of a collective bargaining unit. Under the terms of the
401k Plan, employees may contribute a percentage of their annual compensation to the 401k Plan up to
certain maximums, as defined by the 401k Plan and by the U.S. Internal Revenue Code. The Company
currently matches a portion of employee contributions to the plan. The Company recognized expense of
$5.9 million, $4.7 million and $4.0 million in the fiscal years 2011, 2010 and 2009, respectively, related to
such employer matching contributions under the plan. These amounts are included in selling, general and
administrative expenses.
In addition, pursuant to the 401k Plan, the Company may make profit sharing contributions to the
accounts of employees who meet certain eligibility requirements and who are not members of a collective
bargaining unit. The Company’s profit sharing contributions to the 401k Plan are determined by the
Compensation Committee of the Company’s Board of Directors. The Company recognized expense of
$3.1 million, $2.7 million and $2.4 million in the fiscal years 2011, 2010 and 2009, respectively, related to
such profit sharing contributions under the 401k Plan. These amounts are included in selling, general and
administrative expenses.
18. Income Taxes
The Company and its subsidiaries file consolidated income tax returns in the U.S. federal jurisdiction and
most state jurisdictions as well as in various foreign jurisdictions.
The provision for income taxes for the fiscal years 2011, 2010 and 2009 consists of the following (in
thousands):
Year Ended September 30,
2011 2010 2009
Current:
Federal ................................ $ 97,172 $69,112 $48,335
Foreign ................................ 11,081 4,432 4,276
State .................................. 13,629 11,197 5,507
Total current portion ..................... 121,882 84,741 58,118
Deferred:
Federal ................................ 2,615 2,896 8,204
Foreign ................................ (2,525) (2,814) (1,676)
State .................................. 242 (703) 1,051
Total deferred portion .................... 332 (621) 7,579
Total provision for income tax .............. $122,214 $84,120 $65,697
F-38